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tv   [untitled]    July 2, 2014 1:00am-1:31am PDT

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the san francisco land use & economic development committee i'm scott wiener the chairman of the committee to my left is supervisor malia cohen and our vice chair is supervisor kim will be joining us momentary. our clerk is andrea and i want to thank sfgovtv for broadcasting today's hearing. madam clerk, any announcements?. >> yes please be advised the ringing of and use of cell phones, implemented copies the documents should be submitted 90 to the clerk and it will be on
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the august agenda. >> thank you. i want to not something before we start that also meeting today starting at 2 o'clock and cohen and i each have a items and if land use if this committee hearing is still going when those items supervisor cohen's item gets called we will take a brief recess and resume when they're done i don't think either item will take long. madam clerk call number one >> it's a resolution of the president to permit the issuance the qualified revenue bonds for the presidio avenue. >> okay. and supervisor breed
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is the author of this item and understand that ann ray merry from the office of housing community development. >> good afternoon, supervisors i'm ann i'm from the mayor's office of housing and community development this is for the city to submit an application to the debt committee to issue up to 15 million in revenue bonds in support of the john burton housing complex that will be 50 new units for single-family homes the booker t washington is using the housing authority and the new participating at the site on the corner of presidio. the 24 units will help the
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youth. the housing and community center is located in separate air rights particles so the affordable housing will be structured as a bond with 19.9 million with the sthat fnsz this bond application will be reviewed and if paragraphed the project is starting in september. it is not condo financing. a public hearing was held and upon award our office will return to the board it issue the bonds so if you have any questions, i'll be happy to answer them about this project we also have representatives from the booker t washington center and the other center >> thank you, thank you very
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much number one for public comment seeing none, public comment is closed. okay supervisor cohen can i have a motion to forward item one not full board with revolver recommendation >> absolutely i want to make a motion with positive recommendation. >> okay we'll take that without objection. madam clerk item 2. >> item 2 is a resolution authorizing the issuance the revenue bond not to exceed for the rosa park senior housing. >> ms. ray merry. >> good afternoon, supervisors again before you today is a resolution authorizing the city to issue multiple family revenue bonds to support the rosa parks two for the senior housing in the western edition rosa will be
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constructed on the parking lot a hundred and 98 construction owned by the housing authority. site control of the new project is through a prepaid with the three oriented from a senior housing project and the tenderloin is the partner and so we've received the capital advance funding with the rental avoidance from hud so the project will have deep affordability we'll provide the funds this is condo financing. a public hearing was held on june 16th and if we move forward the construction will start in august of 2016 it will provide
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20 units targeting homeless seniors. a representative if t n d c is here as well >> thank you very much. we'll open up this for. any public comment on that item on item 2 seeing none, public comment is closed. supervisor cohen >> you made a motion. >> yes. i'd like to make a motion. >> yes. with positive recommendation. >> we'll take that without objection.. madam clerk case law call items three and four together >> not to exceed 4.1 million for the transit center and item 4 is to establish the transit center community facilities district. >> and i will call up ken rich from the office of economic workforce development.
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>> good afternoon, commissioners ken rich from worrisome we're - this will ledge fund from the region highest priority transportation projects the estimation from fourth and king to the new type 2 diabetes for the growing of this important part of the city. the city has planned for significant growth around the new terminal with the exception this will be a transportation hub and rail. when the city adapted the district plan we saw the important value on the adjacent parcels by allowing them to grow higher from one hundred to one
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thousand feet he city supports this as a core part of the do you only and encourages the jobs and housing particularly affordable housing that will be created. as pt of the approval and agreement with the developers to do so the city will capture a small portion of the new value about one half of one percent to pay for the crucial infrastructure projects for the new development to participate in this is a critical part of the funding to provide the infrastructure necessary to make this 0 neighborhood work it as grand bargain that was made with the development community when the project went forward. we're now coming forward with the meshes how this will will work consistent with the agreement adapted as part of the transit district plan. bruce before i close we're aware
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of the funding gap on the top of the transit there center the mayor is committing to make sure the park opens on time and working with the parties precedes from the melrose district may be used to pay for the park per with that, i was going to introduce adams to go through the details >> in terms of introduction do we have. >> we have the numbers and a representative from tjpa at the end. >> i have a number of questions about the project as i'll fully supportive of but convicting and costs of the phase two and the park a a number of things that have given me concerns i don't
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know the best person. >> if it would be okay to go through the presentation tjpa is here to answer the questions but are certainly city staff can help. >> is the department of public works here i know that dpw is going to help to provide additional project oversight. >> we're aware of that roll and, speak. >> you can speak for dpw. >> we can speak not for but - >> i want to understand this project is completed successfully and we get the downtown extension built correctly. >> understood. >> one more question i know we
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received a letter this morning from mr. ruben representing a number of the developers in the area do you have you seen it. >> i haven't. >> i'll give you my copy or the clerk has a copy i'm sure i've kenya seen the argument if you can address some of the concerns. >> we'll prepared to address again, i'm not reading the letter but i know what's in it. >> is it true, mr. rich. >> good afternoon alzheimer's from the planning department to talk about the transit center or cf d i'm joined by a number of city staff from the office of economic workforce development and the tjpa is here and we have several consultant who can speak
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to some of the technical issues. >> so just to be clear there are two items before the board the resolution of intent to incur debt have to one $.4 million arrest as part of the resolution of continued to establish there are a number of supporting documents the map of the district a rate and method of proportion time how the takes are assessed and the construction using the functions a joint facility commitment brown the city and bart to talk about how the funds can be structured and transferred to those agrees for the project that are under their per view with the melrose fund. i'm going to talk about the cities planning efforts in the
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transbay area and i'm going to turn it over to - then speak about the project and i'm going to turn it over to the tjpa to talk about united states funding project for the funding of the downtown rail extension. so to start with the city has a long-standing goal for the planning around the type 2 diabetes project around the transit center and really a preliminary focus to fund the downtown rail extension and support the growth that will be coming to support those key infrastructure projects so the city a has been planning for 10 years plus starting with the development area and the adaptation of the district plan
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adapted in 2012 and ken mentioned the project was part of that approval process for the transit center plan. this map shows the area that sort of has been under planning in the attributing area the boundary go from market street in the north to fulton and then to spear street to socket street on the west the redevelopment parcels that are currently owned and dispopsz of by ocii and in the jurisdiction that's part of the redevelopment area but the parcels are under the jurisdiction of the planning and the larger boundary is covered by the district plan the same boundary u boundary you'll see
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for the mel reduce district a contract as ken mentioned through the transit center significant now height increasing in the velocity up to one thousand feet and up to eight-hundred feet to support new transit oriented growth in the sort of most transit served area in the region and to help fund the attributing e type 2 diabetes terminal that was a competitive streetscape plan that was down we're flushing you tell out with the costs estimates to carry the new number of huge people into the term and there was a significant planning for open space over 8 acres of open space and part of
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the plan was to adapt the implementation plan to help us pay our the facilities including the tjpa project there were a couple of different funding impact fees on the new development that was adopted as well as the development to propose the mel ruse district we've been developing on the materials to form the mel ruse and that's what we're presenting to you today. so to go into a little bit of information it was proposed we're presenting to you today is fully consistent with what's in the plan in terms of the agreements and terms approved and adopted by the board of supervisors in 2012.
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just to mention a major development it per the planning code and the developer partners. existing development is not required to join 9 mel ruse district only on new prospers that pays for the downtown rail extension. so here's a map showing the proposed district the initial parcels their shaded on a gray on the formation and includes the publicly owned projects and has as part of their at this time to join the district. there's a future ann satisfaction area and as parcels get dialed within the area and trigger that they'll vote into the district.
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one of the significant components is the rate of portion time how the tax a calculated and accessed on new development on new development it didn't apply to existing knows. the way it's set up the tax is based on a land use for sale and rental for office for hotel and retail there's different rates in the document that apply as new development comes in and each rate excuse me. there's a base rate that's established and that rate escalates annually by the construction index that's used for impact fees and once the parcel gets the tax it goes
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up we're going to exempt affordable housing and the childcare spaces. a little bit more each project pays the tax for no more than thirty years in the district plan that acquires after 60 years when the project is complete a they'll get assessed and the city developers the tax levy. the city principle promise they can prosecute a foreclosure that's for the bonded payments. so this shows the revenue we expect to generate call roll on the pipeline we project about
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$1.2 million that will fund for the public infrastructure and the rest is finance casts of costs it's for $1.4 billion that leaves video. your approving the district for the state law you're required to set a maximum bond authorization and to go back and do that requires a vote of the property owners and we have people not living in the district by future we will so we want to leave room in this case it is needed. today, our approving a legislation not an onions the bonds that will have to go back after the first buildings are up
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and open not before 2015. in terms of what the revenues are spent open the landscape that are a number of transportation the downtown rail and this fiscal will go that's consistent in the implementation document. as part of this package we'll be adapting a facilities agreement that would state 82.6 percent of the revenues go towards the tjpa project and that is consistent with what's in the trans center plans adapted documents. we're also a separate item that's not before you today is important to mention there's a property community benefit district that will pay for the maintenance of the facilities. this is a list of the facilities
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straight out of the city plan it's the capital facilities that would be paid for and lastly how is this governed and administered essentially the board approvals the bond authorization and it goes to the cities capital plan to project the revenue working with the department of finance would help us to project the bond revenue and makes recommendations for the bond sales and we will develop a 5 year expenditure plan that goes through the capital process that goes to the board as well. this is done through our committee that includes tjpa and bart as well. here's an overall timeline the 3
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protective actions for the board to take this is the protective action with intention to form and the landowner logic active action. and so to reiterate interests an approval the resolution to establish the vicinity and the resolution of intent to incur up to $1.4 billion so before i turn it over to my colleague i want to incite from the concord group the method lodge they've helped to figure out the rates for the district >> tim. >> good afternoon commissioner tim with the group i run the san francisco office and have been
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involved in this for several years i've helped attributing to in fact the waters and buildings just quickly a little bit of background for the exercise really simply you know we're looking at a very generic look at san francisco buildings in this strict that are market supportable given the context of day today, it's a high-water mark it's the high technology part we're extremely located well with the downtown area but basic rewe've got the revenue costs at a high level across the buildings and look at the height as you go up a building to generate a overall net income
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value and then capitalize it there's a lot of assumptions when we look at the evaluation project we have to look at trades so it out put of the model as you look at the scale from the first floor to the 50 accounting floor we're looking at similar buildings for new constructions in similar book stores locations for our conclusion. those are numbers their the current context and reflective of the evaluation in san francisco. yeah. real quick if you have any questions, i'll be happy to answer them or address them later on >> thank you. sir >> i'm going to turn it over to scott from the transbay joint
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powers authority transbay joint powers authority to talk about their funding program. >> sir. hi good afternoon scott with the transbay joint powers authority i'm there the first phase is the construction of the center itself curling in the downtown we broke ground in 2010 and finished the demolition of the form terminal in the fall of 2011 last february we completed the excavation roughly within beale and do you only we're about three-quarters of laying the foundation of the transit center and our next construction progress will be the beginning of steel construction starting in september so roughly a year from now a skeleton of the
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facility that emerges from the ground. we do in july of 2013 have a to do a budget adjustment to phase one it was roughly one $.6 billion that was increased by over $310 million that was primarily due to account for changes in two areas we did a risk and jushth will assessment of and at that point the project with the conceptual design phase so we're going to do another adjustment so we did a subsequent jushlt assessment of in 2012 that i identified approximately $58 million of
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security enhance times we added to the budget earlier in 2013 we did a risk assessment of that showed or recommended was some significant increases to our reserves so it relates to the strength of the construction market there's quite a bit construction downtown surroundings the transit center we're the victims of our own success when people want to build for buildings it's created a competitive environment. at the same time when we did that adjustment in july of 2013 we identified one hundred and $10 million of net revenues those are listed on the chart here. we have about 12 acres of land
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that the sfaifk e state of california nominated we were able to sell off those and the revenues go back to the project. again, the strength of the san francisco economy has increased the strength of the land sells the prospectives in san francisco is increasing that added to the adjustment we also got additional money from prop k there's a certain amount of money but it flows over time so when we're accelerating those funds to use them for currently construction costs there's a downtown rate the transportation authority found out they're lower than anticipated so our prop k revenues increased by
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$40 million. we had a lot of money in new revenues and the 3 hundred and 10 adjustment that leaves the monies that were going to be receiving from the mel ruse $28.5 million towards the construction of the park and another 2 hundred million from the mel ruse. phase two is the tunnel it connects the tunnel into king and the new transit center. on this map first of all, you see alignment 4.3 miles going up targeted downtown i up to the new trait center another thing the need for the d t